masif

Dear Fellow Expats,

I am looking to move to Dubai in a few months time from the UK. I wanted to understand the requirements of a mortgage process? Do i need to establish a new credit history in Dubai, or would a decent job and Salary be good enough?

Is it relatively simple to get a mortgage like UK, and what is the %age on a 25% deposit for a AED 1.5 million property?

Millhouse

Why do you want to buy?

masif

I reckon buying will be better than renting over a 5 year period. Imagine me paying 150k per annum over 5 years for an accomodation in lieu of rent(costing 575k), versus buying something around 1.5 million and perhaps selling it at the same money. I know their are lots of other variables to consider but I always feel that buying is a better option than renting. Do you feel otherwise or have a better suggestion?

Having said that, back to the original question, how is the mortgage market in Dubai?

mission

all expats are required to put down a cash deposit of 25% - i think it's 25 or might be 20.

Millhouse

It's at best a zero sum game. Over the first five years of a mortgage most of the payments are interest which is bascially rent.

Then you take the risk on maintenance, service charges, impossible to resell, taxes and fees, and the currency. Why buy USD assets when the USD is so overvalued. If the GBP strengthens over the next five years you'd be screwed.

frequentflyer1234

Don't forget to factor in the mortgage arrangement fee, payment protection insurance, setup fees, transfer fees etc etc which can add up to 5% to the purchase price.

Meow

This is all you need to know about buying a property in Dubai.

A Guide to Buying Property & Getting a Mortgage in Dubai: https://financialuae.me/2017/04/10/a...gage-in-dubai/

You will have to be out of your probationary period before any lender will even consider you.

Let me know if you want more info as I have a great in-house mortgage department.

Meow

Far closet to 8% as the Land Registry fee alone is 4%.

See article posted above.